CLERMONT-FERRAND, France — Group Michelin has completed its $480 million acquisition of 88-percent control of Indonesian tire maker P.T. Multistrada Ara Sarana Tbk., producer and marketer of the Achilles and Corsa brands as well as a number of private brands.
The transaction was completed on Jan. 22 after obtaining all of the necessary approvals. Michelin said it is launching a public offer for the remaining outstanding shares, at the same price per share as that offered for the shares already acquired.
Multistrada generated $281 million in sales in fiscal 2017.
The deal provides Michelin with annual capacity of more than 180,000 metric tons of production and strengthens its presence in the fast-growing Indonesian market. The deal includes a 20-percent stake in the Indonesian retailer P.T. Penta Artha Impressi and 123 acres of available land, according to Michelin.
The French tire maker said it intends to convert the Cikarang plant's Tier 3 passenger tire capacity to Tier 2 Michelin Group brands with "limited investment" and by "leveraging its technical expertise." That conversion will free up more Tier 1 production at other Asian plants and support growth in demand for Tier 2 volumes in Europe, North America and Asia.
Michelin said annual capacity at the Cikarang plant comprises 11 million passenger, 9 million two-wheeler and 250,000 truck tires.
This will be Michelin's seventh tire plant in Asia/Pacific. Its others are in China (two plants), India and Thailand (three plants); it also owns a 10-percent stake in Indonesia's P.T. Gajah Tunggal, from which it sources tires.
Multistrada was founded as P.T. Oroban Perkasa in 1988 and initially used technology purchased from Pirelli Tyre and later from Continental A.G. Majority control was purchased in 2004 by a pair of local investors, PVP XVIII Pte. Ltd. and P.T. Indokemika Jayatama, which then took the company public.
Multistrada is represented in the U.S. by Achilles Tire USA Inc. of Irvine, Calif.